With a very small percentage of the population permitted to use their personal vehicles like normal during this lockdown period, vehicle insurance claims have significantly dropped.
Because of this, AA Insurance is set to "look after" their customers through three initiatives that are a direct result of the Covid-19 lockdown precautions.
According to a recent release, the insurance provider has set aside a $2 million fund to look after vulnerable customers, and is putting a freeze on premium increases across car, home and contents packages.
More importantly, the company is looking at potential premium reductions for car insurance customers once it has a "clearer picture of the impact of lockdown and the other restricted alert levels on our claim costs".
Speaking about these initiatives, AA Insurance CEO Chris Curtin said: “We are mindful people are driving less which is reflected in fewer claims being made. We do not intend to take advantage of this at the expense of our customers.”
AA Insurance is the first large provider in New Zealand to officially throw around the idea of vehicle insurance premiums dropping as a result of the lockdown, but we can imagine others will follow suit.
Despite this, the majority of insurance providers are offering some sort of financial hardship package, to help customers that have been hit hard by the lockdown.
If you need to discuss one of these packages, get in touch with your provider to talk about your options.